Quote:
Originally Posted by evolutionmovement
Another thing is that pretty much ALL the industry is getting hurt right now, it's just that the US companies don't have any financial cushion to weather it and their product range is more limited in terms of desirability.
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I think we have to couch desireability in terms of affordability during economic down turns. Rich people. . .or even upper middles will buy whatever car is what they want somewhat regardless of economic times. The item that is going to hurt US autos is they are going to completely lose a chunk of their market share to imports.
That market share is the "replacement" category. People who have had their car a while and its showing signs that its time to move on. Normally these people will just swap what they had for a new model year, but now in the economic downturn lower, lower-mid, mid and even some parts of upper-mid(depending on whats going on with other sectors of their life) will have to look for something much less expensive. 26K base price for a Taurus(
Ford Taurus 2009: See pricing details, car options, packages and more | Ford Vehicles) is going to send them packing for a 15K civic 2 dr coupe, or a 10K Hyundai Accent or a 12k+ Fit.
The reason those domestics can't compete is it costs to much to make them(roughly twice as much for the employees is what you are paying for in the 26 grand Ford Taurus because its not special). Hyundai, Kia, Honda and Toyota were aiming at collecting that low income bracket anyway and are going to have windfalls because the user base got shifted down.
Even if Detroit wanted to be green it knows it cant do it. Detroit can only make more expensive cars than the imports(blame labor) and so they HAVE to target audiences that don't really care and just want luxury, HP and shiny-ness. Would you buy Ford's 26,000 Prius over Toyota's 22,000 Prius. No, so Ford doesn't try they only make luxury cars, SUVs and sports cars.